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PERSONAL INCOME AND DISPOSABLE INCOME: Personal income (PI) is the total income received by the members of the domestic household sector, which may or may not be earned from productive activities during a given period of time, usually one year. Disposable income (DI) is the total income that can be used by the household sector for either consumption or saving during a given period of time, usually one year. Disposable income is after-tax income that is officially calculated as the difference between personal income and personal tax and nontax payments. In the numbers game, personal tax and nontax payments are about 15% of personal income, which makes disposable personal income about 85% of personal income.

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Lesson 18: Banking | Unit 1: What It Is Page: 1 of 24

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The primary profit-motivating task of a bank is to match up borrowers and savers.

Two main functions:

  • First: Banks maintain deposits for costumers.
  • Second: Banks offer loans to credit-worthy customers.

Banks and the money supply:

  • Banks are financial intermediaries.
  • Banks must remain stable because their deposits are part of the economy's money supply.
  • Closing down a bank would be detrimental to the money supply.

Regulation:

  • Banks are heavily regulated by government.

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AVERAGE VARIABLE COST CURVE

A curve that graphically represents the relation between average variable cost incurred by a firm in the short-run product of a good or service and the quantity produced. This curve is constructed to capture the relation between average variable cost and the level of output, holding other variables, like technology and resource prices, constant. The average variable cost curve is one of three average curves. The other two are average total cost curve and average fixed cost curve. A related curve is the marginal cost curve.

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APLS

WHITE GULLIBON
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Today, you are likely to spend a great deal of time driving to a factory outlet trying to buy either a rechargeable flashlight or storage boxes for your computer software CDs. Be on the lookout for bottles of barbeque sauce that act TOO innocent.
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The 1909 Lincoln penny was the first U.S. coin with the likeness of a U.S. President.
"Defeat is simply a signal to press onward. "

-- Helen Keller, author, lecturer

MCA
Monetary Control Act of 1980
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